Golden Metal Resources plc (LON:GMET), a mineral exploration company focused on tungsten, gold, copper and silver within Nevada, USA, is pleased to announce the signing of a Letter of Intent (“LOI”) with United States-based Global Tungsten & Powders LLC (“GTP”) of Towanda, Pennsylvania, in respect of a tungsten concentrate off-take agreement (“Off-take”) for Golden Metal’s wholly-owned Pilot Mountain Project (“Pilot Mountain” or the “Project”) located within the prolific Walker Lake Mineral Belt in Nevada, USA.
The non-binding LOI provides outline terms for a future off-take agreement, subject to successful technical and legal due diligence, and also to Golden Metal securing necessary funding to develop Pilot Mountain.
– LOI signed with leading United States supplier of tungsten powders and semi-finished parts outlining proposed terms to acquire a minimum of 50,000 metric MTU’s (metric ton unit) W03 contained in tungsten concentrates, which may be increased to 70,000 MTU’s by mutual agreement, subject to the successful development of the Project.
– The specific product outlined in the Off-take is for 65% WO3 tungsten concentrate. Pricing will be in US dollars and based on a discount to the European APT (ammonium Paratungstate) quote provided by Fast Markets (Formerly Metal Bulletin).1
– GTP and Golden Metal also intend to discuss and consider cooperation opportunities for the development of a Western World supply chain strategy which will align with recent policy announcements from the US Department of Defense and the US Defense Logistics Agency with regard to the building of strategic stockpiles of critical minerals, including tungsten products.
Oliver Friesen, CEO of Golden Metal, commented:
“Let me be the first to welcome our new partner Global Tungsten & Powders, which is a significant player in the global tungsten industry. The signing of this agreement represents a significant milestone and an encouraging step forward for our Pilot Mountain Project.
“The LOI not only outlines the proposed terms of a supply agreement for future tungsten concentrate sales to GTP from Pilot Mountain, but also the cooperation between our two companies in regard to the development of Western World critical metals supply chains – with particular reference to tungsten.
“Today’s announcement also further bolsters the Project’s overall profile and its attractiveness as a target for non-dilutive grant funding for exploration and development, something the Company is actively pursuing at present.”
Global Tungsten & Powders (GTP) develops, manufactures and markets refractory metal powders such as tungsten, tungsten carbide, and cobalt. GTP is a leading Western supplier with production facilities in the United States, Finland, the Czech Republic, and Luxembourg
Golden Metal holds a 100% interest in the Pilot Mountain Project through its wholly-owned Nevada-based operating companies BFM Resources Inc and Pilot Metals Inc.
1: Tungsten concentrate pricing is generally structured at a discount to the tungsten APT price reflecting the value added via the upgrade to APT.
Forward Looking Statements
This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the timing and granting of regulatory and other third party consents and approvals, uncertainties regarding the Company’s or any third party’s ability to execute and implement future plans, and the occurrence of unexpected events.
Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.
For further information visit www.goldenmetalresources.com or contact the following:
Golden Metal Resources plc
Oliver Friesen (CEO)
Tel: +44 (0) 20 7583 8304
Cairn Financial Advisers LLP
Sandy Jamieson/Jo Turner/Louise O’Driscoll
Tel: +44 20 7213 0880
First Equity Limited
Jonathan Brown/Jason Robertson
Tel: +44 20 7374 2212